URGENT Problem in Subcontracting

abhinav_khanna2008

we are using Navision 4.0.

In the subcontracting process there is a provision to create the subcontracting order & then receive the items & Invoice the Order.

This is perfect when the case is that a raw material goes to the subcontractor & after processing a semifinished/finished item is received in this case it's okay to receive the returned goods in the inventory.

BUT

if a semifinished/finished item is sent for subcontracting & the same item is returned back from the subcontractor after processing. in this case if we
receive the item it would increase the inventory whereas actually the inventory level is the same.

Is there any way out to Invoice & update the subcontracting order & the cost of the production order without effecting the inventory levels.

Please help>>>>> ITS URGENT<<<<<<<

Deep

You have to check what entry type the system is punching.
In case of RM, the item journal must be used as you said that RM goes and FG/SF returns. In this case:

RM : Entry Type=Negative Adjustment
SF/FG: ENtry Type=Positive adjustment.

In the second case, the entry type must be "Transfer" with the same item code. i.e. the inventory must be getting transferred to some location. If this is the case, the inventory level will remain same.

Kindly check.

cernst

You use routings for subcontracting right?
Then you buy a service on a production order for example painting then when you receive the painted goods from the subcontractiong vendor and post a receipt on the purchase order the routing operation is posted. If the operation is the last in the routing then output quantity is posted if not no output quantity is posted.
With the rigth setup of routing this isn't a problem add an extra operation after the subcontracting operation if you don't want any output quantity to be posted.

abhinav_khanna2008

Hey Deep,
Thanx buddy that's an alternative available for the second case but the problems in this case are
a. Invoicing to the vendor !! How will it be created???
b. If we receive the goods from the transfer orders what about the SubContract cost in the value of the Prod. Order.

Hey Mr. Noname..
Thanx to you too.
but the thing is that in India we are provided with a subcontracting module, where by a subcontracting order is created & the goods are received through it & also invoiced but as i mentioned the second case, the receiving of the goods in the inventory is not appropriate. since the item that goes out is received back.

cernst

Ok I See that explains some other subcontracting questions from India